a) Explain whether or not the following are, or can be, stakeholders of Amy & Amily Tutorial Partnership: (i) NatWest Bank, (ii) Trade Unions, (iii) Management, and (iv) Parents of students of Anna & Akwasi Tutorial Partnership. Give reasons. . (12 marks)

b) Explain the need and use of financial information for each of the stakeholders, where applicable. Give examples of specific financial information they may need to support your answer in each stakeholders case, where applicable, and explain the usefulness of the specific information so indicated. Examples of financial information include, but not limited to, income statements, statements of financial position, cash budgets and breakeven analysis. (16 marks)

c) Specifically, discuss how the cash budget in Appendix B (for James Freeman and Family Enterprise for the year 2020), and the statement of financial position in Appendix C (for Janet Zhang) could be useful to (i) employees, and (ii) lenders of the respective organisations.

d) Explain the difference between profit and cash. Use information in the cash budget (Appendix B) and the income statement (Appendix D), respectively, to illustrate the difference.

Appendix A: Financial Transactions of Amy and Amily Tutorial Partnership Amy and Amily Tutorial Partnership started business on 1st May 2020 to provide premium support classes to international students in the UK using online tools. The following are some of the transactions that occurred during the month of May 2020. Transaction Date (May 2020) 13 1ste 2nd 3rd 6th The partners, Amy and Amily, contributed capital to the tune of 50,000 which was deposited in a bank account they had opened with NatWest Bank, Aberdeen branche Amy and Amily Tutorial Partnership signed an agreement with Zoom Limited to use their technology to engage with their clients online. They paid 17,500 in deposit e They rented an office space and paid 1,000 by cheque. They purchased computer equipment totalling 8,000, paying half by cheque. They were allowed the remaining half on credit. They accepted a bank loan of 12,000, which was credited to their account on the same day. Their revenue consisted of course fees paid by students. An amount of 30,000 was received through international transfers into their bank account. They paid wages to their support tutors, amounting to 14,000.- Stationery and other general expenses paid amounted to 5,800 They invested in short-term securities and paid by cheque, 60,000.- Amy and Amily withdrew 4,000 each from the bank account for their personal th(Ctrl) 10th 10th 17tha 25the 30th use. Appendix B: Cash Budget for James Freeman and Family Enterprise for the year 2020- Q1e Q2 Q3 Q42 Totale a RECEIPTS (INFLOWS: CASH SALE (60%) 60,000 1 MONTH CREDIT SALES (40%) 40,000 ADDITIONAL CAPITAL 40,000 72,000 40,000 120,000 180,000 432,000 48,000 80,000 208,000 40,000 TOTAL INFLOWS 140,000 112,000 168,000 260,000 680,000 e e 50,000 90,000 PAYMENTS (OUTFLOWS: PURCHASES PURCHASE OF EQUIPMENT ADMIN. WAGES / SALARIES 40,000 180,000 5,000 10,000 120,000 300,000 180,000 10,000 26,000 16,000 52,000 5,000 12,000 6,000 14,000 235,000 67,000 110,000 146,000 558,000 (95,000) TOTAL OUTFLOWS e NET CASH FLOW [SURPLUS/(DEFICIT)] OPENING BALANCE CLOSING BALANCE 45,000 58,000 114,000 122,000 35,000 (60,000) (60,000)|(15,000) 43,000 35,000 (15,000) 43,000 157,000~ 157,000 Appendix C: Statement of Financial Position of Janet Zhang as at 31st December 2019 Non-Current Assets: Plant & Machinery Buildings Motor Vehicles at cost Fixtures & Fittings 5,000 50,000 10,800 2,100 67,900 Current Assets: Inventory Trade receivables Cash at Bank 18,000 26,010 3,092 47,102 Less: Current Liabilities Trade payables (20,386) Net current assets (working capital) Total Assets - CL 26.716 94,616 Less: Non- Current Liabilities 01 al (0) 94616 Net Assets Financed by: Capital Profit 93,450 8,366 101,816 (7,200) 94.616 LESS: Drawings Appendix D: Income Statement of Janet Zhang for the period ended 31st December 2019 E f Net Sales: Sales 111,600 Sales returns (1.500) 110,100 LESS: Cost of sales: Opening inventory 14,208 Purchases 71,244 1,860 Carriage in Purchases returns (2,6 02) 84,710 (18,000) (66.710) LESS: Closing inventory Gross Profit Add: Other incomes: 43,390 0 Q 43,390 1,200 22,640 1,824 1,000 LESS: Expenses: Carriage out Salaries & Wages Rent & Rates Insurance Motor expenses Telephone Electricity General expenses Net Profit 2,856 2,624 996 1.884 (35,024) 8,366